P3 Components - Maintenance

The private sector takes on the risks of maintaining and renewing the ‘bricks and mortar’ (also called ‘hard’ facilities management) of public infrastructure when the maintenance component is included in a P3 contract. Though rare in Canadian jurisdictions, a maintenance provider may also take care of ‘soft’ facilities management, such as hospital cleaning and portering.

Dedicated funds are set aside for long-term maintenance and life-cycle costs when the private sector is contracted to manage maintenance services in P3 project agreements. That arrangement also provides a long-term warranty on the ‘hard facilities’.

Examples of P3 ‘hard’ facilities management services:

In schools, hospital or a courthouse, the private sector may maintain and repair the heating and air-conditioning system, elevators and escalators.

On roads and bridges, the private sector may be responsible for repairing potholes, pavements, or lighting systems.

For a transit system, the private sector may be responsible for maintaining the transit cars, rails, systems, stations and storage facilities.

Examples of life-cycle renewal services:

Providing a new roof or heating system for a hospital

Repaving a road

Replacing the light rail track or refurbishing a station

Advantages of integrating maintenance

Throughout the contract term, the private sector:

repairs and renews the infrastructure, as agreed to in the contract provisions

uses good industry practices

keeps the asset operating at all times or faces financial penalty (e.g. for an elevator out of service or lack of access to an operating room or courtroom)

submits regular ‘state of repair’ updates to the public sector and allows periodic audits by third party technical advisors

Turns over the asset to the government in a good state of repair at the end of the contract term